Demand for industry-loss warranty (ILW) protection saw progressive momentum throughout Q2 2026, culminating in a peak during the mid-year reinsurance renewals. At the same time, after a record opening half to the year, catastrophe bond activity is expected to be very active in Q4, a new commentary from SCOR Investment Partners has highlighted.
ILW market activity tends to pick up at the mid-year renewals, given that this period immediately precedes the peak of the North Atlantic wind and hurricane season, and both insurers and reinsurers often use this time to calibrate and expand their catastrophe and retrocessional portfolio’s.
Reflecting on this year’s June and July renewals, SCOR Investment Partners noted that there was significant interest in purchasing ILW protection against US hurricane and US earthquake.
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